TiVo still undecided on future focus

Written by CSI

27/02/19

It is no secret that TiVo, the original disruptive DVR pioneer, has been transitioning to a software-based model (boosted by the merger with Rovi) for some time, in line with broader industry trends. Late last year it emerged that the company embarked on a strategic review to examine the various options open in terms of a re-organisation or even some kind of sale, a process that is taking longer than anticipated.

A report on TiVo’s Fourth Quarter and Full Year 2018 Financial Results offered few clues.“We continue to make progress with our review of strategic alternatives and are still in ongoing discussions regarding potential strategic options or transactions for each of our Product and IP Licensing businesses. Due to the unique nature of our Product and IP Licensing businesses, this process is taking longer than we hoped,” said interim CEO Raghu Rau, who is expected to remain in his role until the strategic review comes to a close in whatever shape or form.

For now, TiVo management continue to stall and are still undecided what the best course of action would be for the company. Is the best outcome a complete sale, splitting some businesses, sell them off, or a combination of the above? Separating hardware from the IP Licensing activities, at least within the organisation, seems the most likely short term prospect.

“We have proactively begun working internally on preparing for the possible separation of the two businesses to help address some of the complexities and potentially facilitate strategic transactions. The Board and management team continue to be thoughtful about the outcome that can best drive shareholder value for TiVo. We look forward to providing additional information by our first quarter earnings call,” Rau said.

The company statement also read: “TiVo’s management and Board are still conducting an in-depth review of its businesses, cost structure and strategic options to maximize shareholder value. Due to the broad range of potential outcomes, the Company is not currently providing financial estimates.”

On the IP front, TiVo continues to expand its licensing, particularly in international markets and the company sees this as an area of long-term growth.

TiVo reported fourth-quarter revenues down 21% to $168.5 million, as income from licensing settlements and hardware halved. Adjusted EBITDA fell 43 percent to $42.1 million, and a goodwill impairment of $269 million on hardware led to an operating loss of $273.5 million.

Related Articles

Connected home evolution

Your
browser does not support HTML5 video.

In this video CSI talks to ARRIS about the emerging smart media device category and service integration of voice/smart assistants in the connected home

Helping MSOs migrate to DOCSIS 3.1

Your
browser does not support HTML5 video.

In this video, CSI talks to Rohde & Schwarz about cable's migration to DOCSIS 3.1 technology and other advanced cable tech network evolution, including testing